diff --git a/python/packages/core/agent_framework/_tools.py b/python/packages/core/agent_framework/_tools.py
index cf7384588f..f7bc3f0e15 100644
--- a/python/packages/core/agent_framework/_tools.py
+++ b/python/packages/core/agent_framework/_tools.py
@@ -466,9 +466,15 @@ def _resolve_input_model(self, input_model: type[BaseModel] | None) -> type[Base
         if func is None:
             return create_model(f"{self.name}_input")
         sig = inspect.signature(func)
+        try:
+            type_hints = typing.get_type_hints(func, include_extras=True)
+        except Exception:
+            type_hints = {}
         fields: dict[str, Any] = {
             pname: (
-                _parse_annotation(param.annotation) if param.annotation is not inspect.Parameter.empty else str,
+                _parse_annotation(type_hints.get(pname, param.annotation))
+                if type_hints.get(pname, param.annotation) is not inspect.Parameter.empty
+                else str,
                 param.default if param.default is not inspect.Parameter.empty else ...,
             )
             for pname, param in sig.parameters.items()
diff --git a/python/packages/core/tests/core/test_tools_future_annotations.py b/python/packages/core/tests/core/test_tools_future_annotations.py
new file mode 100644
index 0000000000..1c9649dcb9
--- /dev/null
+++ b/python/packages/core/tests/core/test_tools_future_annotations.py
@@ -0,0 +1,134 @@
+# Copyright (c) Microsoft. All rights reserved.
+
+"""Tests for @tool with PEP 563 (from __future__ import annotations).
+
+When ``from __future__ import annotations`` is active, all annotations
+become strings.  _resolve_input_model must resolve them via
+typing.get_type_hints() before passing them to Pydantic's create_model.
+"""
+
+from __future__ import annotations
+
+from pydantic import BaseModel
+
+from agent_framework import tool
+from agent_framework._middleware import FunctionInvocationContext
+
+
+class SearchConfig(BaseModel):
+    max_results: int = 10
+
+
+def test_tool_with_context_parameter():
+    """FunctionInvocationContext parameter is excluded from schema under PEP 563."""
+
+    @tool
+    def get_weather(location: str, ctx: FunctionInvocationContext) -> str:
+        """Get the weather for a given location."""
+        return f"Weather in {location}"
+
+    params = get_weather.parameters()
+    assert "ctx" not in params.get("properties", {})
+    assert "location" in params["properties"]
+
+
+def test_tool_with_context_parameter_first():
+    """FunctionInvocationContext as the first parameter is excluded under PEP 563."""
+
+    @tool
+    def get_weather(ctx: FunctionInvocationContext, location: str) -> str:
+        """Get the weather for a given location."""
+        return f"Weather in {location}"
+
+    params = get_weather.parameters()
+    assert "ctx" not in params.get("properties", {})
+    assert "location" in params["properties"]
+
+
+def test_tool_with_optional_param():
+    """Optional[int] is resolved to the actual type, not left as a string."""
+
+    @tool
+    def search(query: str, limit: int | None = None) -> str:
+        """Search for something."""
+        return query
+
+    params = search.parameters()
+    assert params["properties"]["query"]["type"] == "string"
+    limit_schema = params["properties"]["limit"]
+    limit_types = {t["type"] for t in limit_schema["anyOf"]}
+    assert limit_types == {"integer", "null"}
+
+
+def test_tool_with_optional_param_and_context():
+    """Optional param + FunctionInvocationContext both work under PEP 563."""
+
+    @tool
+    def search(query: str, limit: int | None = None, ctx: FunctionInvocationContext | None = None) -> str:
+        """Search for something."""
+        return query
+
+    params = search.parameters()
+    assert params["properties"]["query"]["type"] == "string"
+    limit_schema = params["properties"]["limit"]
+    limit_types = {t["type"] for t in limit_schema["anyOf"]}
+    assert limit_types == {"integer", "null"}
+    assert "ctx" not in params.get("properties", {})
+
+
+def test_tool_with_optional_custom_type():
+    """Optional[CustomType] is resolved under PEP 563 (original bug pattern)."""
+
+    @tool
+    def search(query: str, config: SearchConfig | None = None) -> str:
+        """Search for something."""
+        return query
+
+    params = search.parameters()
+    assert params["properties"]["query"]["type"] == "string"
+    config_schema = params["properties"]["config"]
+    config_types = [t.get("type") for t in config_schema["anyOf"]]
+    assert "null" in config_types
+
+
+def test_tool_with_unresolvable_forward_ref():
+    """Fallback to raw annotations when get_type_hints() fails."""
+    import types
+
+    # Build a function in an isolated namespace so get_type_hints() cannot resolve
+    # the forward reference, exercising the except-branch fallback.
+    ns: dict = {}
+    exec(
+        "def greet(name: str = 'world') -> str:\n    '''Greet someone.'''\n    return f'Hello {name}'\n",
+        ns,
+    )
+    func = ns["greet"]
+    # Place the function in a throwaway module so get_type_hints() will fail on
+    # any non-builtin forward ref while still having a valid __module__.
+    mod = types.ModuleType("_phantom")
+    func.__module__ = mod.__name__
+
+    t = tool(func)
+    params = t.parameters()
+    assert params["properties"]["name"]["type"] == "string"
+
+
+async def test_tool_invoke_with_context():
+    """Full invocation with FunctionInvocationContext under PEP 563."""
+
+    @tool
+    def get_weather(location: str, ctx: FunctionInvocationContext) -> str:
+        """Get the weather for a given location."""
+        user = ctx.kwargs.get("user", "anon")
+        return f"Weather in {location} for {user}"
+
+    params = get_weather.parameters()
+    assert "ctx" not in params.get("properties", {})
+
+    context = FunctionInvocationContext(
+        function=get_weather,
+        arguments=get_weather.input_model(location="Seattle"),
+        kwargs={"user": "test_user"},
+    )
+    result = await get_weather.invoke(context=context)
+    assert result[0].text == "Weather in Seattle for test_user"